It is reported that Shougang Group, one of China’s major steel makers, acquires 90 percent equities of Shanxi Changzhi Iron & Steel Co., Ltd. (Changgang) for 500 million yuan, after getting an official reorganization agreement with each other.
Changgang now has an annual iron and steel production capacity of 3.6 million tons.
After the reorganization, the new company named Shougang Changzhi Iron and Steel (Group) Co., Ltd. will still be stated-owned one, with the remaining 10 percent equities owned by Changzhi City State-owned Assets Management Corporation.
Shougang has promised to invest more than 19 billion yuan in three years to optimize the product mix of the new company and expand its annual output to six million tons.
Since it removed from China’s capital city Beijing to the neighboring province (Hebei Province), Shougang has completed the building of an annual production capacity of 10 million tons in Caofeidian, Hebei.
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